NIIT Technologies settles case with Sebi; pays Rs 19.12 lakh

NIIT Technologies settles case with Sebi; pays Rs 19.12 lakh

has settled with markets regulator Sebi a case pertaining to alleged violation of listing norms after paying Rs 19.12 lakh towards settlement charges.

NIIT had approached the watchdog to settle the case under the settlement regulations “without admitting or denying the findings of fact and conclusion of law”.

The watchdog had conducted an investigation into trading activities in the shares of NIIT Technologies during December 22, 2014 to March 23, 2015 period.

In March 2015, NIIT had made an announcement to the stock exchanges that a dispute has arisen between one of its subsidiaries and one of its clients, which may result in claims and counter claims and that the company has provisioned USD 10 million for the same.

It was alleged that NIIT was aware of the situation regarding the dispute since December 22, 2014, when a law firm advised NIIT and its subsidiary to resolve the dispute through the dispute resolution process.

The regulator noted that the company’s subsidiary received a default notice from its client on March 13, 2015, which was immediately informed to the company.

However, it was alleged that the company made the corporate announcement regarding the dispute in the context of receiving default notice with a delay of ten days.

The announcement made by the company was, prima facie, considered as price sensitive information, the order, passed on Friday, said.

The company was required to make disclosures to the stock exchange immediately on receiving the default notice from its client, it added.

NIIT approached Sebi to settle the instant proceedings. The regulator’s high-powered advisory committee considered the settlement terms proposed by it and recommended the case for settlement upon payment of Rs 19.12 lakh.

NIIT Technologies is now known as Coforge Ltd.

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